The Samsung Group flag flies in front of the company’s Seocho building in Seoul.
Sopa Picture | Lightrocket | Getty Images
Shares of Samsung Electronics jumped on Monday after the company announced a surprise plan to buy back about 10 trillion South Korean won ($7.19 billion) worth of its own stock over the next 12 months.
Shares of the South Korean tech giant rose more than 7% in Seoul, after shares had risen 7.21% on Friday, following news that the company had reached a preliminary agreement with its largest union, which went on strike in July.
Samsung last bought back shares in November 2017, according to data maintained by LSEG.
In a regulatory filing, the company said 3 trillion won of shares would be bought back over the next three months and canceled.
The remaining 7 trillion won in share buybacks will be “authorized by the Board, which will decide how to increase shareholder value, including when and how to use treasury shares,” he added.
Shares of Samsung have reached a four-year low on November 15, after the company posted disappointing profit guidance for the third quarter and amid concerns about tariffs after US President-elect Donald Trump won the presidential election.
The company is lagging behind rival SK Hynix in the race to supply high-bandwidth memory, or HBM chips, which are key components used by AI leader Nvidia, with analysts telling CNBC that “it’s fair that Samsung hasn’t been able to close the gap with SK Hynix on its roadmap.” development of HBM.”
HBM is a type of dynamic random access memory, known as DRAM. DRAM is often used in laptops, workstations and PCs.
According to South Korean media, SK Hynix was the first chipmaker in the world to supply its fifth-generation HBM3E chip to Nvidia in March.
– CNBC’s Arjun Kharpal contributed to this report.
